The third in a five-part series devoted to the seminal BMW M model looks at the third generation model: the E46 BMW M3.

Launched at the turn of the millenium, the E46 featured significant design and technical changes, transitioning from a hardcore street racer to a comfortable and balanced sports car that did not lose any of its racing credentials. Pared down to just coupe and convertible bodystyles, the E46 featured a 3.2-litre inline-six that saw output go up to 343bhp. The power dome, fender vent and inset exhaust tips were introduced as design trademarks as well.

The growing popularity of the M3 saw BMW selling more E46 models (even with its fewer bodystyles) than the second generation E36. A special 10-example run of the M3 GTR was also made, with a 4.0-litre V8 producing a whopping 493bhp.

Check out the video above highlighting the third generation M3, and stay tuned for the rest of the five-part series.